Toyota offers spinoff benefits to Tennessee economy

As the world’s second largest automaker, Toyota maintains operations around the globe and employs nearly 350,000 people. Over a third (135,900) of Toyota’s global employment is in its U.S. facilities.

The Center for Automotive Research (CAR) recently completed an analysis of Toyota’s economic contribution to the U.S. economy, as well as the economies of 19 individual states—including Tennessee. The study demonstrates a decades-long commitment from Toyota to produce vehicles, employ workers, and contribute to the tax base of both the country as a whole and the many states where the automaker has a presence.

Toyota’s presence and history in Tennessee is an excellent illustration of how the company’s U.S. activities benefit individual states and communities.

The centerpiece of Toyota’s presence in Tennessee is its Bodine Aluminum facility in Jackson. As of December 2015, $284 million was invested in the facility.

Toyota’s presence in Tennessee also supports numerous additional jobs throughout the state. In addition to its 2,300 direct employees in Tennessee, Toyota supports 2,500 jobs at automotive suppliers. Combined with supported spinoff jobs in other industries, Toyota is estimated to support 13,000 jobs in Tennessee. This economic activity results in an annual financial contribution of over $398 million to the state’s economy via disposable personal income.

Toyota’s positive impact on Tennessee is not limited to its employment and financial contributions. The company has long since been a leader in environmental sustainability as applied to both its products and the manufacturing facilities that produce them. In Tennessee, the Bodine Jackson plant recycles more than 13,000,000 pounds of aluminum each year. It’s also earned the U.S. Environmental Protection Agency’s 2016 Energy Star Award, the 2016 Wildlife at Work certification from the Wildlife Habitat Council, and is a zero-landfill facility.

On an international level, Toyota-produced vehicles -- such as the Mirai -- use advanced technologies to reduce the environmental impact of driving. The Mirai was named 2016 World Green Car at the New York International Auto Show.

In addition, Toyota’s execution as a leader in manufacturing efficiency raises the bar for suppliers. Its supplier development efforts teach companies to perform at world-class levels; benefiting organizations within and outside of the Toyota supply chain.

To date, Toyota has donated over $700 million to nonprofit organizations in the United States—including $69 million in 2015. That same year, Toyota reported nearly $300,000 in philanthropic activity in Tennessee.

The positive impact Toyota’s operations have had on the people and the economy of the state of Tennessee serves as a perfect illustration of the company’s commitment to supporting American jobs and the U.S. economy.

CAR’s full study, Contribution of Toyota Motor North America to the Economies of Nineteen States and the United States in 2015, may be found on the CAR website at http://www.cargroup.org.

Jay S. Baron is president and CEO of the Center for Automotive Research, a non-profit automotive research center.